Chapter 01

1. Define e-business and e- marketing.

E-business (electronic business) is the conduct of business processes on the internet. These e-
business processes include buying and selling goods and services, servicing customers,
processing payments, managing production control, sharing information, running automated
employee services and more.
E-Marketing encompasses all the activities a business conducts via the worldwide web with the
aim of attracting new business, retaining current business and developing its brand identity.
2. What are some of the marketing implications of Internet technologies?
Some of the most important implications are the digital data that can be accessed, stored,
transferred, and received at an instant. The larger markets those are available due to global reach.
With global reach another implication is the Network Externality, and Time Moderator. Partners
or consumers want the information and they want it fast. Internet has given us that option.
Consumers can contact companies instantly via email. Partners can use teleconferencing to reach
across the globe.
3. How does technology change traditional marketing?
Marketing has changed in many ways due to technology. The amount of people who can be
reached has increased dramatically. With smart phones, applications, social media, and the
internet overall being one of the main sources companies use to get information out to the
consumers. The lower cost of marketing now is one big advantage that the internet offers.
4. What fundamental changes has the Internet brought to marketing?
The internet has lowered cost, provided a global reach for all marketers. They can collect and
store data that can be tracked and measured. They can individually personalize the message that
is being sent out to the consumers with that data. The time span for marketing has also been
increased to 24 hours a day, 7 days a week.
5. Describe the important internet properties that affect marketing.

Internet is all about bits not atoms, all the information, products, and communication in digital
can be stored, sent and received instantly. Task Automation is one of the internet properties that
affect marketing. For example, self service online that makes automated transaction and payment
online possible also make operational cost lower for the company. Internet also had bought with
it the mediating technology. Social network, music files sharing and business partnership can be
formed regardless of geographical location. Time moderation is where customer have high
expectation to the company on communication aspect. Customer want their problem and issues
be solved quickly and there come customer services department in the company deal with it.
6. As a technology, how does the Internet compare with the telephone?
We are living in a society which is using the internet more and more for everyday things. In the
context of marketing it only makes sense that marketers would use the internet to sell and expose
the general public of items. When marketers use the telephone to sell products a lot of consumers
do not like this method of marketing causing using the telephone to not be hugely successful. As
more and more consumers use the internet, this technology can be seen as more successful
because consumers are not interrupted doing something else but are already on the internet and
can close the pop up box if they do not wish to look at the advert. The use of the telephone is
decreasing although mobile phones improve because of technology because more and more
mobiles have the internet which they can access whenever and wherever.
7. What are metrics and why are they important?
Metrics are numbers that reflects important information about a process under question. Metrics
are used to drive improvements and help businesses focus their people and resources on what’s
important. The range of metrics that companies can employ vary from those that are mandatory –
for legal, safety or contractual purposes – to those that track increases in efficiency, reductions in
complaints, greater profits and better savings. Overall, metrics should reflect and support the
various strategies for all aspects of the organization, including finance, marketing, competition,
standards, or customer requirements and expectations. Metrics indicate the priorities of the
company and provide a window on performance, ethos and ambition.
8. What is the difference between inbound and outbound marketing?
Inbound marketing is promoting website and business with various forms of quality content
through blogs, search engine optimization, social media, videos, newsletters, podcasts,
whitepapers, eBooks, and more. The idea behind inbound marketing is to create and distribute
relevant and valuable content that the customers want. The useful content pulls visitors toward
website, brings them closer to brand, engages them and converts them into customers as well as
loyal followers. In contrast, outbound marketing includes traditional approaches, such as direct
mail, cold calling, radio ads, television ads, trade shows and telemarketing. Outbound marketing
is also often called interruption marketing. This term is easily understood by anyone who has had
his or her dinner interrupted by an unwanted telemarketing call.

9. What are the key elements of Web 2.0?

Some of the key elements of web 2.0 include customer engagement as well as shifting the power
to the buyers from the sellers. Reputation engines and search engines are also a very important
element of web 2.0. People want reviews from real people and they will trust that over the actual
company provided information itself. Inbound marketing and on and offline strategy integration
are a main element that web 2.0 is helping to increase.
 Chapter 09

1.What are the arguments for and against using existing brand names on the Web?

Companies creating new products for online sale must decide whether to apply existing brand
names or create new brand names for new products. An existing brand name can be used for any
new product, and doing this makes sense when the brand is well-known and has strong brand
equity (value). The flipside is that if the brand equity is weak, a new brand name may be desired.
Some firms may not want to use the same brand name if the new product or channel is risky, the
firm does not want to jeopardize the brand’s good name by associating with a product failure.
Also, a powerful Internet success might inadvertently reposition the existing brand name.

2. List six new-product strategy categories and provide Internet examples of each.
The six new-product strategies are:
Discontinuous innovations: New to the world products never seen before like the first Web
authoring software, cell phone/PDA combination, shopping agent, and search engine.
New product lines: When firms take an existing brand name and create new products in a
completely different category like when Microsoft introduced the Internet Explorer Web browser
to compete against Netscape and the Windows media player against Real Player.
Additions to existing product lines : Occur when organizations add a new flavor, size, or other
variation to a current product line. Examples include GTE’s Super Pages as an interactive line
extension to its Yellow Page directories and stockbrokers such as Schwab who have opened up
Internet operations.
Improvements/revisions of existing products: Products are introduced as “new and improved.”
Examples include how Web-based e-mail systems such as Eudora or Outlook improved on
client-based e-mail systems. Similarly, media players continuously adapt new standards and
functionality like Win amp with the ability to play, convert, and extract music into numerous file
formats.
Repositions products: Current products that are either targeted to different markets or promoted
for new uses. An example is when Yahoo! began as a search directory on the Web and then
repositioned itself as a portal.
Me-too lower-cost products: Introduced to compete with existing brands by offering a price
advantage. Examples include when America Online and other ISPs were charging per hour rates
for Internet access, several other providers introduced unlimited use at flat rate pricing for $19.95
per month.
3. Why is value tied to the entire product experience?
The entire product experience provides value to the customer; is defined by the customer;
involves customer expectations; and applies at all price levels. It starts with a customer’s first
awareness of a product, continues at all customer touch points and ends with the actual product
usage and post purchase customer service.Second, value is defined wholly by the customer.
Regardless of how favorably the firm views its own products, it is the customer’s perceptions
that count. Third, value involves customer expectations; if the actual product experience falls
short of their expectations, customers will be disappointed. Fourth, value is applied at all price
levels.
4. What are some important criteria for naming internet domains?
Use.com. org or.net, brand able over generic, shorter, easy to type, easy to pronounce, avoid
hyphens and numbers. Choose a name that will build consistency with the content and
communication. Make sure it doesn't lack name recognition for its well-known brands.
5. How does labeling work on the Internet?
Labeling often identifies a brand, sponsors firms, reveals product ingredients, provides
instructions for use, and promotes materials. In cases like the internet, labeling is good for
instructions on how to install/use software, copyright info, increase customer confidence and
trust, and spread awareness through social media/sharing.
6. What techniques can e-marketers employ to enhance new-product development?

 Customer Co-design vs. Crowd-sourcing.

 Internet properties spawn other opportunities.

 New-product strategies for E-Marketing.

7. Why do e-marketers need to forecast revenue, expenses, ROI, and break even for new
products under consideration?
Marketers generally forecast the expected revenue over time, deduct marketing and other
expenses and generate a break- even point and return on investment estimates for new products
prior to their launch. These performance metrics are necessary for feedback so firms can measure
the success of the product in market prior to official release.